Young Intellectual Forum Believes the Job Creation Law will Encourage Economic Transformation
Jakarta — The Constitutional Court’s decision to reject the lawsuit against the Job Creation Law on October 2 2023 has triggered various views and analyzes from various groups of society. The Young Intellectuals Forum, a group that advocates for innovative policies, also voiced their belief in the potential of the Job Creation Law in driving Indonesia’s economic transformation.
According to Co-founder of the Young Intellectual Forum Muhammad Sutisna, M.Si, the Constitutional Court’s decision confirming that the Job Creation Law has binding legal force is an important step in the structural reform of the Indonesian economy. This reform aims to avoid the middle-income trap that could occur in the future.
“One of the most striking aspects of the Job Creation Law is its attempt to attract foreign investment. By simplifying the licensing process and providing better incentives to investors, the Job Creation Law provides space that can generate greater capital flows into Indonesia. “This foreign investment can certainly create jobs, increase production and encourage economic growth,” he said.
Sutisna also highlighted the role of the Job Creation Law in increasing bureaucratic efficiency. Complex and layered bureaucracy has become a major obstacle for entrepreneurs, including those with small and medium business status. The Job Creation Law seeks to overcome this problem by simplifying the licensing process and reducing unnecessary bureaucracy. The impact of this move is increased business efficiency and reduced costs previously required to comply with complex regulations.
“On increasing employment, although considered controversial by some parties, the employment reforms proposed by the Job Creation Law can also provide benefits such as providing greater flexibility to employers to regulate employment contracts and working hours, thereby allowing them to adapt operations to changing conditions. economy while still paying attention to labor rights,” he added.
Apart from that, the Job Creation Law also allocates a large portion of the budget generated from investment projects to the infrastructure sector. It is hoped that this will help overcome infrastructure problems which have been an obstacle to economic growth in Indonesia. Environmental aspects also do not escape attention, as the Job Creation Law includes efforts to protect the environment by encouraging companies to adopt sustainable practices and comply with stricter environmental regulations.
Sutisna emphasized that supporting the Job Creation Law is an important step to encourage Indonesia’s economic transformation. Implementation of this law has the potential to increase investment, improve the business climate and create jobs. For the Young Intellectual Forum, the role of all parties, including government, civil society and business, is important in ensuring that the Job Creation Law provides sustainable benefits for Indonesia.
“Transparency, public participation and strict supervision are the keys to ensuring that the Job Creation Law can provide sustainable benefits for Indonesia. “Therefore, the role of all parties, including government, civil society and business, is very important in navigating the journey towards successful economic transformation,” he concluded.
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